Quickflix Boss Pulls Off Another Houdini Stunt
This time the close to broke content distribution Company has said that they are acquiring a mystery Chinese film and television company in an effort to once again save their backside from being scorched by the likes of Netflix who last month snared 13% of the WA Companies customers.
Quickflix last week reported a loss of $800,000 (and $3.83m for the year to date) in the three months to June.
The Company that has never made a profit despite sucking up millions in other people’s capital including money from the Nine Entertainment Network, on Friday mysteriously put itself into a trading halt.
Today they remerged with yet another deal, this time via a non-binding memorandum of understanding with an unknown Shanghai-based company.
How the company plans to pay for the transaction, and the identity of the acquisition target, remains a mystery, which is not surprising with Quickflix who 18 months was cutting deals with questionable New York based investor Crede Capital Group (CCG) in an effort to raise $1.68 Million, the Company is run by Terren Peizer the former right hand man of jailed Wall Street heavy Michael Milken.
The latest deal remains subject to completion of further due diligence and regulatory approvals.
In a statement to the ASX, Quickflix said the nameless company produced original Chinese language film and TV, participates in co-production in China and international markets. Quickflix also said it had a slate of future production including a co-production with another (nameless) US studio.
Quickflix even rolled out one of their bog standard lines claiming said the tie-up between the two companies would result in a significantly improved financial outlook and the ability to access further capital for growth.
We know of at least three Companies that have been burnt by Quickflix and their inability to deliver profits.
Right now Quickflix is in desperate need of cash with several people telling ChannelNews that they see “no future” for the Company up against Netflix, Telstra, Foxtel and the Stan joint venture between Fairfax Media and Nine Entertainment.
The latest excuse from Quickflix was that pent-up demand for Netflix had caused a sharp decline in its paying subscribers in the past three months which fell to 107,969 down from 122,862 a year ago.
There was no mention of the fact that Quickflix does not have the capital to buy content.
The announcement of its mystery Chinese acquisition comes on the heels of the collapse of a deal between Quickflix and Foxtel and Seven joint venture Presto.
The Presto deal would have substantially boosted the content on offer to Quickflix subscribers by positioning the company as a reseller of Presto’s online content, freeing it up from the costly impost of purchasing online streaming rights for movies and TV shows.